BELOIT, Wisc. (Feb. 3, 2012) - Regal Beloit Corporation acquired Milwaukee Gear Company, a Wisconsin-based manufacturer of highly engineered gearing components for oil and gas applications as well as a wide variety of other commercial and industrial applications.
The acquisition price was $80 million, subject to customary working capital adjustments, and was paid in cash. Milwaukee Gear is expected to add approximately $60 million in revenue for the remainder of fiscal 2012. The acquisition is expected to add $0.03 to $0.06 to diluted earnings per share in 2012, including the impact of purchase accounting adjustments and transaction costs, and $0.12 to $0.16 to diluted earnings per share in 2013. Results of operations will be reported in the Mechanical segment.
“Milwaukee Gear is a very well managed business with an excellent reputation resulting from its application engineering excellence and its high precision manufacturing processes,” commented Mr. Mark Gliebe, Chairman and Chief Executive Officer of Regal Beloit Corporation. “The business will be a great fit within our Mechanical segment, allowing us to offer customers a larger range of gearing solutions while diversifying our end markets,” continued Mr. Gliebe.
Regal Beloit Corporation is a manufacturer of electric motors, mechanical and electrical motion controls and power generation products serving markets throughout the world. Regal Beloit is headquartered in Beloit, Wisc., and has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia. Regal Beloit’s common stock is a component of the S&P Mid Cap 400 Index and the Russell 2000 Index.